Concurrent Computer Corporation Announces Second Quarter Fiscal 2002 Financial Results.Business Editors/High-Tech Writers ATLANTA--(BUSINESS WIRE)--Jan. 24, 2002 -- Record Video-On-Demand Revenue of Over $12.4 Million -- Positive Net Earnings Results Concurrent Computer Corporation  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (R) (Nasdaq:CCUR CCUR Center for Crops Utilization Research ) continues to build on its market leadership in commercial Video-On-Demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. (VOD See video-on-demand. VoD - video on demand ) deployments in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . For the Company's second fiscal quarter ended December December: see month. 31, 2001, aggregate revenues were $22.5 million, and net earnings were $56 thousand or $0.00 per share compared to aggregate revenue of $14.5 million and a net loss of $4.2 million or $0.08 per share in the same quarter of the prior year. The Company's balance sheet remains strong, exiting the quarter with a cash balance of $28.2 million and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . VOD revenue from the XSTREME Division aggregated over $12.4 million, an increase of $10.6 million or 578% versus the second quarter of last year and up $8.9 million or 254% sequentially. The increased revenues for the quarter were primarily due to more aggressive VOD deployments by Time Warner Cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , including the Central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. market which is Time Warner's third largest cable market. Gross margins for the XSTREME Division increased to 41%, up 300 basis points over the second quarter last year and up 600 basis points sequentially. "I am extremely pleased with the performance of the XSTREME Division. In a period of macro economic uncertainty, we remained focused on our strategy of delivering the most reliable and scalable interactive TV solutions while concurrently bringing new technologies for next generation interactive applications to the market. The evidence of our success is in the numbers. As of today, we have shipped to six different cable operators, totaling 25 markets with an aggregate of 7.2 million basic and over 1.6 million digital subscribers. With 357 servers installed, we have achieved another milestone of 100,000 video streams installed in support of commercial VOD launch activity," said Jack Bryant Bry·ant , William Cullen 1794-1878. American poet, critic, and editor known especially for his early nature poems, such as "Thanatopsis" (1817) and "To a Waterfowl" (1821). , Concurrent president and chief executive officer. The Real-Time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Division had another quarter of solid results. Total revenue for the Real-Time Division was $10.1 million versus $12.7 million last year. Gross margins for Real-Time product sales were 56%, up 800 basis points over the second quarter last year and 300 basis points sequentially. Paul Meyer
Marie-Paul-Hyacinthe Meyer (January 17, 1840 - September 7, 1917), was a French philologist. , president of the Real-Time Division, commented, "Our qualification as a Baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version 7 Phase 1 supplier for the shipboard ship·board n. 1. The condition of being aboard a ship: on shipboard. 2. Archaic The side of a ship. adj. deployment of our PowerMAXION(TM) System to the U.S. Navy's Aegis program has been a significant contributor to our success. Additionally, I am pleased with the new opportunity with SAAB SAAB Svenska Aeroplan Aktiebolaget (Swedish Aeroplane Corporation; auto/aircraft manufacturer) SAAB Student-Athlete Advisory Board SAAB Student African American Brotherhood SAAB South African Association of Botanists to port certain applications, which are currently running on WindRivers's VxWorks A popular real time operating system for embedded systems from Wind River, Alameda, CA (www.windriver.com). It is used to control a wide variety of products, including network and telecom devices, test and measurement equipment, computer peripherals and consumer products. (R), to our PowerMAX OS(TM) operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. for SAAB's Grippen Fighter Simulation Project." Major VOD Wins During the quarter, the Company announced three additional market wins. Concurrent announced that Time Warner Cable had selected Concurrent's complete end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. VOD solution for providing large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. content on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front capabilities to its Central Florida, Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , and Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. divisions. The Central Florida division was the original site of Time Warner's full service network and is Time Warner Cable's third largest system with more than 670,000 basic subscribers. The Houston division is Time Warner Cable's fourth largest system with more than 660,000 basic subscribers. This launch was the largest in the industry on a Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V. platform. The Cincinnati system is pioneering the launch of subscription Video-On-Demand (SVOD SVOD Subscription Video on Demand SVOD Stacked Volumetric Optical Disk SVOD Subscription Voice on Demand ) and serves 332,000 basic subscribers. Notably, the Company has now rolled out VOD service to Time Warner's second, third, and fourth largest systems and is leading the way in overall VOD deployments at 10 sites. During the second quarter, the Company shipped its video servers to two unannounced Time Warner markets. Technology Developments Concurrent continues to develop new technologies that are key to the system operators' objectives of capturing incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenues through the creation of new services and differentiating their offerings from the satellite broadcast competitors. In December at the Western Cable Show, Concurrent demonstrated several new technological developments as part of its Personal TV (pTV(TM)) suite. One of the new technologies demonstrated was Concurrent's Personal Video Channel (pVC(TM)). pVC(TM) technology incorporates personal video recorder See DVR. functionality and capitalizes on the operators' two-way digital network by storing the content out on the network. By offering Concurrent's pVC(TM) technology, operators will empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems their subscribers to take command of their televisions and provide them with the ability to watch broadcast programs they want to watch, when they want to watch them. Within the quarter, the Company announced a revolutionary new service poised to fundamentally change traditional advertising. Concurrent demonstrated server-based targeted and interactive advertising. The new targeted advertising technology enables advertisers to optimize optimize - optimisation their advertising dollars by targeting viewers based on demographic information stored on the network specific to the viewer's respective set-top. Additionally, the interactive advertising application enables viewers to have an interactive session with a commercial stream from the MediaHawk(R) Video Server via a keystroke key·stroke n. A stroke of a key, as on a word processor. key  stroke on the remote control.
Also within the quarter, the Company introduced a new pTV(TM) solution for small to mid-size cable markets - Concurrent's Small Market Model solution. This solution has been deployed successfully with Mediacom Mediacom Communications (NASDAQ: MCCC; usually called just Mediacom) is a cable television and communications provider in the United States. Originally founded as an analog network in 1995, Mediacom is currently the 8th largest cable company in the United States. on Motorola's National Authorization The right or permission to use a system resource; the process of granting access. See access control. Service (NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular ) and allows content to be propagated and managed over satellite to cable headends and then made available to the end user via the MediaHawk server. The building suite of pTV(TM) services includes interactive programming such as VOD, SVOD, information services See Information Systems. , interactive advertising, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , and enhanced TV Enhanced TV (ETV) is one example of interactive TV. It is used in particular in reference to Two-Screen Solutions TV + PC services. Generally users of these ETV services have their TV and computer in the same room, and navigate their web browser to a particular program-specific Web . There are more than 7.5 million NAS-controlled Motorola DCT (Discrete Cosine Transform) An algorithm that is widely used for data compression. Similar to Fast Fourier Transform, DCT converts data (pixels, waveforms, etc.) into sets of frequencies. The first frequencies in the set are the most meaningful; the latter, the least. digital set-top terminals deployed. In a separate press release issued earlier today, the Company announced its new MediaHawk Model 3000 Video Server, offering broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). operators the highest density, most reliable, and most cost-efficient Adj. 1. cost-efficient - productive relative to the cost cost-effective efficient - being effective without wasting time or effort or expense; "an efficient production manager"; "efficient engines save gas" server in the industry. A scalable, high-performance server system, the MediaHawk Model 3000 is optimized for the demanding requirements of end-to-end, interactive television applications. The Company indicated that it will begin commercial shipments of the robust MediaHawk Model 3000 within the current quarter. Revenue and Earnings Guidance Concurrent anticipates deploying to an additional 5 - 7 markets in its third quarter and expects revenue in the third quarter from its XSTREME Division to be level with or slightly higher than the second quarter ended December 31, 2001. VOD revenue in the fourth quarter is expected to approximate between $12 and $14 million as additional cable operators beyond Time Warner begin their 2002 VOD deployments. This brings estimated total revenue from the XSTREME Division for all of fiscal 2002 to approximately $40 to $42 million. Revenue from the Company's Real-Time Division is expected to approximate $10 million per quarter for both of the next two quarters, which brings the aggregate revenue expectations for the Company to approximately $22.5 million in the third quarter ending March 31, 2002, $22 to $24 million for the fourth quarter ending June 30, 2002, and between $81 and $83 million for all of fiscal 2002. With these revenue expectations, the Company expects to approximately break even in its third quarter, earn between $0.00 and $0.01 per share in its fourth quarter, and lose approximately $0.04 to $0.05 per share for the fiscal year. Earnings Conference Call Please join us for the second quarter earnings conference call scheduled for this afternoon, Thursday, January 24, 2002, at 4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The conference call will be web cast and can be accessed from our web page at http://www.ccur.com. About Concurrent Concurrent Computer Corporation (http://www.ccur.com) is a leading provider of high-performance computer systems, software, and servers. Concurrent Computer Corporation's XSTREME Division is a leading supplier in the emerging digital video server marketplace. This market includes broadband VOD and rich streaming media See streaming audio, streaming video and digital media hub. applications such as corporate training, education, hospitality, and digital video-to-the-home. Concurrent is also a leading provider of high-performance, real-time computer systems, solutions, and software for commercial and government markets. Concurrent's 35-year-old Real-Time business focuses on strategic market areas that include hardware-in-the-loop and man-in-the-loop simulation, data acquisition, industrial systems, and software. Operating worldwide, Concurrent provides sales and support from offices throughout North America, Europe, Asia, and Australia. Concurrent brings over 35 years of real-time experience to the broadband VOD and rich streaming media industries, and has become a market leader. Today, Concurrent's worldwide broadband VOD and rich streaming media trials and deployments include: AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Time Warner Cable - 10 markets; Beijing Fengtai Cable - China; Blue Ridge Blue Ridge, eastern range of the Appalachian Mts., extending south from S Pa. to N Ga.; highest mountains in the E United States. Mt. Mitchell, 6,684 ft (2,037 m) high, is the tallest peak. Beginning with a narrow ridge in the north, c. Communications - Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York ; Cogeco Cable - Quebec and Ontario, Canada; Comcast - 9 markets; Cox - 3 markets; Horizon.com - Singapore; Mediacom - one market; NXTV Inc. - 4 hotels; OLYMPUS Optical - Hamburg Hamburg, city, Germany Hamburg (häm`b  rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , Germany; Safari
Technologies - 16 educational institutions throughout North America;
Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. Telecom - China; and VOD Pty Ltd PTY LTD Propriety Limited (company structure in Australia) ./TransAct - Australia.
Certain statements made in this press release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the federal securities laws. The words "believes," "expects," "estimates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments and our future performance, as well as our expectations, beliefs, plans, estimates, or projections relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future, are forward-looking statements within the meaning of these laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. The risks and uncertainties which could affect our performance or results include, without limitation: -- availability of VOD content; -- delays or cancellations of customer orders; -- changes in product demand; -- economic conditions; -- various inventory risks due to changes in market conditions; -- uncertainties relating to the development and ownership of intellectual property; -- uncertainties relating to our ability and the ability of other companies to enforce their intellectual property rights; -- the pricing and availability of equipment, materials, and inventories; -- the limited operating history of our VOD segment; -- the concentration of our customers; -- failure to effectively manage growth; -- delays in testing and introductions of new products; -- rapid technology changes; -- the highly competitive environment in which we operate; and -- the entry of new, well-capitalized competitors into our markets and other risks and uncertainties. Other important risk factors are discussed in our Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the Securities and Exchange Commission on October 22, 2001 and may be discussed in subsequent filings with the SEC. Our forward-looking statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise. Note to Editors: For additional company or product information from Concurrent Computer Corporation, please contact Concurrent Computer Corporation, 4375 River Green Parkway, Duluth, GA 30096. Call toll free in the U.S. and Canada at (877) 978-7363, fax 678/258-4199. Readers can also access information through the company's Web site at http://www.ccur.com. Concurrent Computer Corporation and its logo and MediaHawk are registered trademarks and PowerMAXION and PowerMAX OS are trademarks of Concurrent Computer Corporation. VxWorks is a registered trademark of Wind River Systems, Inc. All other products are trademarks or registered trademarks of their respective owners.
Concurrent Computer Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
December 31, June 30,
2001 2001
(unaudited)
------------ ------------
ASSETS
Cash and cash equivalents $ 28,237 $ 9,460
Trade accounts receivable, net 20,211 14,348
Inventories 5,936 7,187
Prepaid expenses and other
current assets 1,459 1,058
------------ ------------
Total current assets 55,843 32,053
Property, plant and equipment,
net 10,671 10,484
Purchased developed computer
software, net 1,488 1,583
Goodwill, net 10,744 10,744
Other long-term assets, net 2,153 2,188
------------ ------------
Total assets $ 80,899 $ 57,052
============ ============
LIABILITIES
Accounts payable and accrued
expenses $ 13,314 $ 13,929
Deferred revenue 2,207 3,300
------------ ------------
Total current liabilities 15,521 17,229
Long-term deferred revenue 948 1,193
Other long-term liabilities 5,320 5,347
STOCKHOLDERS' EQUITY
Common stock 614 551
Additional Paid-in Capital 168,977 140,352
Treasury stock (58) (58)
Retained earnings (deficit) (105,714) (102,760)
Accumulated other comprehensive
loss (4,709) (4,802)
------------ ------------
Total stockholders' equity 59,110 33,283
------------ ------------
Total liabilities and
stockholders' equity $ 80,899 $ 57,052
============ ============
Concurrent Computer Corporation
Condensed Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended Six Months Ended
December 31, December 31,
--------------------- ----------------------
2001 2000 2001 2000
(Unaudited)(Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
Revenues:
Product sales:
Real-time systems $ 4,862 $ 6,738 $ 10,198 $ 11,449
Video-on-demand
systems 12,425 1,832 15,938 7,269
-------- -------- -------- --------
Total product sales 17,287 8,570 26,136 18,718
Service and other 5,194 5,963 10,447 12,127
-------- -------- -------- --------
Total 22,481 14,533 36,583 30,845
Cost of sales:
Real-time and
video-on-demand
systems 9,437 4,640 14,230 10,201
Service and other 2,964 3,231 5,813 6,391
-------- -------- -------- --------
Total 12,401 7,871 20,043 16,592
-------- -------- -------- --------
Gross margin 10,080 6,662 16,540 14,253
Operating expenses:
Sales and marketing 4,174 4,066 8,328 8,139
Research and
development 3,655 2,818 7,116 5,449
General and
administrative 2,189 3,775 4,098 6,242
-------- -------- -------- --------
Total operating
expenses 10,018 10,659 19,542 19,830
-------- -------- -------- --------
Operating income (loss) 62 (3,997) (3,002) (5,577)
Other income (loss) 144 (11) 348 (75)
-------- -------- -------- --------
Income (loss) before
income taxes 206 (4,008) (2,654) (5,652)
Provision for income
taxes 150 150 300 300
-------- -------- -------- --------
Net income (loss) $ 56 $ (4,158) $ (2,954) $ (5,952)
======== ======== ======== ========
Basic net income (loss)
per share $ 0.00 $ (0.08) $ (0.05) $ (0.11)
======== ======== ======== ========
Diluted net income (loss)
per share $ 0.00 $ (0.08) $ (0.05) $ (0.11)
======== ======== ======== ========
Basic weighted average
shares outstanding 61,031 54,675 60,297 54,332
======== ======== ======== ========
Diluted weighted average
shares outstanding 64,761 54,675 60,297 54,332
======== ======== ======== ========
Concurrent Computer Corporation
Segment Data
(In Thousands)
Real-Time Division Xstreme Division
------------------ ------------------
Three Months Ended Three Months Ended
------------------ ------------------
12/31/01 12/31/00 12/31/01 12/31/00
(Unaudited)(Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
Revenues:
Product Sales $ 4,862 $ 6,738 $ 12,425 $ 1,832
Service and other 5,194 5,963 -- --
-------- -------- -------- --------
Total 10,056 12,701 12,425 1,832
Cost of sales:
Systems 2,127 3,502 7,310 1,138
Service and other 2,964 3,231 -- --
-------- -------- -------- --------
Total 5,091 6,733 7,310 1,138
-------- -------- -------- --------
Gross margin 4,965 5,968 5,115 694
Operating expenses
Sales and marketing 1,760 1,904 2,414 2,162
Research and
development 1,272 844 2,383 1,974
General and
administrative 947 1,571 1,242 2,204
-------- -------- -------- --------
Total operating
expenses 3,979 4,319 6,039 6,340
-------- -------- -------- --------
Operating income (loss) $ 986 $ 1,649 $ (924) $ (5,646)
======== ======== ======== ========
Concurrent Computer Corporation
Segment Data
(In Thousands)
Real-Time Division Xstreme Division
------------------ ----------------
Six Months Ended Six Months Ended
---------------- ----------------
12/31/01 12/31/00 12/31/01 12/31/00
(Unaudited)(Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
Revenues:
Product Sales $ 10,198 $ 11,449 $ 15,938 $ 7,269
Service and other 10,447 12,127 -- --
-------- -------- -------- --------
Total 20,645 23,576 15,938 7,269
Cost of sales:
Systems 4,628 5,892 9,602 4,309
Service and other 5,813 6,391 -- --
-------- -------- -------- --------
Total 10,441 12,283 9,602 4,309
-------- -------- -------- --------
Gross margin 10,204 11,293 6,336 2,960
Operating expenses
Sales and marketing 3,435 3,867 4,893 4,272
Research and
development 2,504 1,673 4,612 3,776
General and
administrative 1,866 2,501 2,232 3,741
-------- -------- -------- --------
Total operating
expenses 7,805 8,041 11,737 11,789
-------- -------- -------- --------
Operating income (loss) $ 2,399 $ 3,252 $ (5,401) $ (8,829)
======== ======== ======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion